Recruitment Agency Now


You are here:  Home  >  News  >  Main News Section  >  Current Article

National Living Wage job losses more likely at head office

July 5, 2018  /   No Comments

Headcount cuts in the retail sector caused by rises in the National Living Wage (NLW) would affect head office numbers more than the shop floor, say industry leaders.

Research by UK law firm Foot Anstey shows that most retail leaders, if faced with a squeeze caused by the NLW, would rather keep frontline staff and cut back on head office headcount and other expenses.

On 1 April this year the NLW for the over 25s rose from £7.50 to £7.83 per hour, a rise directly affecting around two million low-paid workers. Foot Anstey polled senior leaders in the retail sector on a range of issues for the Foot Anstey Retail Report 2018: People.

When asked, over half (52%) said they would make savings “elsewhere” rather than reduce in-store staffing. That includes savings in head office headcount as well as store investment.

Foot Anstey’s head of retail, Patrick Howarth, said: “It’s not what we expected, but when you look deeper into the research the reason becomes clearer. 

“The abundance of buying platforms means more staff than ever are directly engaged in the business of creating a customer experience which reflects the brand. Business is seeing that as the key differentiator, and know frontline employees are essential to delivering it. What that means is headcount pressures are more likely to be felt elsewhere – namely head office – rather than on the frontline.”

He added: “We are talking about the NLW here, not rent or competition from online which come with their own challenges.”

A further discovery was a near 50/50 split between retail businesses who are open to modern flexible working and those who are not.

Almost all medium and large retailers say their employees are demanding more flexibility, despite the logistical difficulties of flexible working in the retail sector.

    Print       Email


RA Now 2016 Preview

RA Now 2016 Preview

View all →

Your Voice

  • Oct 11
    Via @IOR_JoinUs on Twitter  Facebook accused of discriminating against women with male-targeted job adverts Read More
  • Sep 27
    Via @agencycentral on Twitter  Need an introduction to recruitment agency regulations? The laws and regulations recruiters absolutely need to know about. Read More
  • Sep 13
    Via @greg_savage on Twitter People don't leave companies. They leave leaders!   Read More
  • Jul 19
    Via @recmembers on Twitter Google for Jobs launched today in the UK – in case you missed it, here’s REC marketing manager Michael Oliver's blog on how agencies can take advantage > Read More

RSS News